generation in other parts of the country, and its feasibility cannot be assessed at
this juncture.

On top of all this, the Gujarat Government has announced that it plans
to complete the entire project by 2000. Such an optimistic plan would require
Rs. 1000 crore to be spent every year for the next seven years, just to meet base
costs. The SSP cannot even meet current spending requirements. Only Rs. 530
crores, were spent in 1992-93, out of a requirement of Rs. 820 crores. The SSP
is about 53-63% behind schedule in terms of money spent on the project
compared to financial schedules drawn up by the Gujarat Government and the
World Bank. The Gujarat Government is devoting 80% of its Eighth Plan
irrigation budget to the SSP (Gujarat State Budget 1993-94), bypassing the needs
of scores of smaller projects in the drought-prone areas of the state. Thus it is
not possible for the state to allocate more money for the SSP.

The SSP appears to be totally unviable from the financial standpoint.
Currently, the Gujarat Government is unable to show financing for even 25% of
the project. Prospects of raising money seem very bleak. A comprehensive
review of the costs and financing of the SSP needs to be conducted immediately.
A fresh decision on the financial viability of the project must be taken. In light
of the reduced benefits of the SSP such an exercise becomes imperative.